Episode 2: What’s with the Skinny Bundle?
Published on 07/11/2019
In last episode we talked about Churn, and it’s the implication for the operators. One of the solutions Mick talked about was to create a dynamic user experience where once you have the right data and understand the user segments you have in your service, and you have visibility of how these user groups are behaving and churning from the service, you can start addressing the problem. This blog builds on this and looks at the area of segmentation and micro-segmentation.
Recently, several articles have claimed that skinny bundles are failing. DISH Network’s Sling TV was the first of the skinny bundles and has arguably been the most successful. But its growth stalled a few years into its existence. Sling TV topped 2.2 million subscribers by the end of 2017. A year later, at the end of 2018, it had 2.4 million.
The cheap, digital live TV packages that Americans embraced in place of expensive cable packages are slowly becoming less of a bargain. Many of the popular “skinny bundle” live TV services, like Hulu with Live TV, YouTube TV, and DirecTV Now, have increased their package prices this year.
So the real question is how to use Skinny Bundle Strategy as a part of your bigger revenue model ? Check out this video to see our thinking on this:
I think the key learning is not so much that skinny bundles are the end state but rather that skinny bundles is just one manifestation of the market segmentation. Under the key learning for the operator , they have to figure out how to use digital technologies to better serve those consumers so they can target their offer. So the consumer and each of those market segments perceive a high value of the services delivered.
Offering consumers value is the critical basis of a successful consumer service. In the current market the market is fragmented – gone are the days of three offers – small, medium and large. These days you need to understand your market in depth, package the offers towards key segments and continuously monitor and refine the offer. So you need small, medium, large, skinny, fat, vertical and horizontal segmentation. OK I got a little carried away there but the point is – understand your segments, create offers which offer value to them and monitor and evolve them continuously. Details of the business/digital transformation necessary to efficiently achieve this are contained in our whitepaper published earlier in the year.
As we get into holiday season soon, while watching Televsion with your family, can you ask yourself what would you like to see more on your TV when it comes to features. Tell us. We want to hear from you. Ask your subscribers and tell us.
From our next episode, we will talk about unique capabilities and our vision as a leading IPTV solution provider in North America. We have thought much ahead, and we would like to share with you as we take this journey with you.
VP Product Management
VP Product Management